Information Flag question a Use the following information to answer the next 3 questions regarding calculating WACC. XCo. has a targeted Capital Structure of Debt 40% and 60% Equity. XCo's stock is currently selling for $25 per share with a stock beta of 1.25. Its $1,000 par value, 20 year to maturity, 10% semi-annual bonds are currently selling for $1,197.93. The yield on a 20-year Government Treasury bond is 5.5% and the return on the Stock Market is 11.5%. The firm's tax rate is 40%. Question 16 a) What is the best estimate of XCo.'s cost of debt? Not yet answered % Marked out of ENG 12:14 PM 2001-11-12 Question 17 b) Based on the CAPM, what is the firm's cost of equity? Not yet answered Answer: Marked out of 4.00 Flag question Question 18 c) What is the best estimate of the firm's WACC? Not yet answered % Marked out of 4.00 Flag question 12:14 PM